With interest rates beginning to climb again, however, others might be wondering if this is still a good time to refinance home loans — or if it makes more sense to wait. So, let's take a look at where mortgage refinance rates currently sit. We'll also break down how they've changed...
What Is a Good DTI Ratio for a Mortgage? Debt-to-income ratio requirements vary, but as a general rule, lenders want to feel comfortable that your current debt load is low enough that you'll be able to repay a debt as large as a home loan. "A strong debt-to-income ratio would be...
While a fixed-rate mortgage’s monthly payment amount is consistent, the portion of your payment that goes toward your principal versus your interest charges based on the loan’s amortization schedule. At first, most of your payment goes toward interest, and later in your loan term, more and...
The initial interest rate on an adjustable-rate mortgage is sometimes called a “teaser” rate, and ARMs themselves are sometimes referred to as “teaser” loans. While they’re generally one and the same, there can be a difference between a regular ARM and a riskier teaser loan that offers...
As a result of rising interest rates, the average 30-year fixed-rate mortgage rate is at its highest level in three years. This is due to the fact that the Federal Reserve has boosted the key interest rate by another quarter-point to combat the high inflation. The rising rates have also...
Learn about the different types of fixed-rate mortgages from CIBC. Choose a fixed-rate closed mortgage for consistent monthly payments, a fixed-rate open mortgage for greater flexibility and learn how they’re both impacted by Canada Mortgage Bonds. Appl
This is the key advantage of a mortgage broker. They have the ability to compare mortgage rates with numerous banks and mortgage lenders simultaneously to find the lowest rate and/or the best loan program with the fewest costs. If you use a traditional retail bank, theloan officercan only of...
In order to determine whether an ARM is a good fit, borrowers must understand some basics about these loans. The adjustment period is essentially the period between interest rate changes. Consider an ARM with an adjustment period of one year. The mortgage product would be called a one-year AR...
A variable-ratemortgageis a home loan with no fixed interest rate. Instead, interest payments are adjusted at a level above a specific benchmark or reference rate, such as the Prime Rate + 2 points. Lenders can offer borrowers variable rate interest over the life of a mortgage loan. They ...
What Is an Adjustable-Rate Mortgage (ARM)? The term adjustable-rate mortgage (ARM) refers to a home loan with avariable interest rate. With an ARM, the initial interest rate is fixed for a period of time. After that, the interest rate applied on the outstanding balance resets periodically...